Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
3 m8 b" L" j0 P- ~. e2 p  |1 {9 YBelow is an Interesting article I found, which says that.....Do not
) [; }) a( X0 c! yexpect much from Crude Oil producers and future is not with the
- D' g( O/ n! T3 g( k7 I* C% [companies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
* [* p( c+ r) S+ ^- Q' V3 p9 Jcrude prices improves. This implies also to good names such as Shell,
  R$ \3 ]2 U& ?2 X8 }) k  WEXXON, BG, BP, Cheveron ....xyz.. oils

, e1 ]; K+ B! w6 E# D- _* j- H; cRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
7 o5 M, O3 j* g6 T/ I, j# dA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.

* z& x: e6 ~; e  @5 ?, B
6 j* _/ _/ U+ y3 S& ]There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:

; J0 B9 X( V! L0 ?+ @" a! R
1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
% s& J/ V) s  v/ T  z6 F9 OArabia.


& E! s  I. r; i0 p0 o4 A& n2. New natural gas has been found in Pennsylvania and West Virginia.
' U1 k+ X* L! L( F* `% oThis is the largest find in North America.
1 i/ k$ \8 ^/ S/ l2 u8 |
$ X- \9 v7 a' M
( L2 a" O! H5 b3. New methods of injecting CO2 and surfactants into oil wells is
7 v8 B* }2 S- ~being used to double their output.


; [( m. F4 m& V. M3 [4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
% G2 F6 ~) S$ u6 \) rpotential per acre in some cases is astounding. Many countries are
+ ^0 p- f# ~( P" m+ pracing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
9 G: G' c1 O3 A) d1 [3 y" Jto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.

- ?5 {- O$ E2 h) g, {
1 O* E; U0 L4 p5 C6 N" E$ ~% e# U6. There are 99 nuclear reactors in various stages of planning and
. t" F$ {8 E* P- t" Dconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.
$ d4 Q5 D8 K4 u  K8 c

6 Y% U6 D0 U# ]5 b. i) R' k7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
0 L* a/ i& S/ ?3 U8 ewith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
% E! R3 r& c# J# y! L8 J0 q2 @$ P4 tequipment.
5 a3 J; }) s3 F+ Q5 @1 N  }3 N

, ~! i/ T9 v- uAirlines are flying airplanes with bio-fuel. They are finding the bio-
1 ]6 H5 S+ e0 N- P5 G& L) \; c9 ufuel is cleaner and performs better than jet fuel.

' O4 J" R3 P8 j/ Q! Z4 \
8. Cities and counties throughout the US are selling the rights to
: L7 i" N6 m/ r( Gcapture methane gas from landfills. This is a huge source of gas
. l7 A& `" d7 aavailable at very little cost or risk. The gas is displacing crude
oil.
4 k" R+ Y3 t9 g3 ^! i0 d2 W$ `) x

9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.
) i  Z2 B4 ?2 n; b8 S, P

- A2 M9 t+ c5 C* A10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.

1 f4 j+ K+ a8 m% f: l
2 H- d; P7 @8 G. [9 b  x/ oEach of the above by itself will not make a large difference in the
2 U& T0 ^9 ^( C8 t) C& E9 `price of crude oil but the sum of all of them together is world
' R, [3 E- g$ J7 y  f, jchanging. The important thing is that OPEC no longer has the ability
to control oil prices.
& u) o. g2 \7 [1 J% z
: A! b1 q* I& x* F! L
With the above scenario, I still believe that there are under
" ~! P/ d  y0 R6 i% |% Kperformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
/ Q4 o  y3 w& b; A
% c/ d, w7 P0 Y2 ?" [
- P; N/ w# J- q8 X. t7 dThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only